US LDPE margins fell 0.5% on rise in ethane

07 October 2013 18:25  [Source: ICIS news]

HOUSTON (ICIS)--US polyethylene (PE) margins for low density polyethylene (LDPE) fell by 0.5% last week, following an increase in ethane costs, the ICIS margin report showed on Monday.

Integrated domestic PE margins were assessed at 68.95 cents/lb ($1,520/tonne, €1,125/tonne) for LDPE and 59.59 cents/lb for high density polyethylene (HDPE) blow moulding in the week that ended 4 October. That represents a 0.35 cent/lb decrease on average for LDPE and 0.35 cent/lb decrease on average for HDPE from a week earlier, using ethane as a feedstock.

The PE margin increased due to a 3.6% rise in ethane feedstock costs, while co-product credits rose 1.2%.

Co-product credits are the price at which products - such as propylene, butadiene (BD) and benzene, which are made along with ethylene in the cracking process - can be sold.

Integrated LDPE export margins rose by 0.63 cents/lb for LDPE on lower feedstock costs. LDPE export prices rose by 1 cent/lb.

($1 = €0.74)

By: Renzo Pipoli
+1 713 525 2653

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